Government targets civil service redundancies to slash spending
CIVIL service “golden goodbyes” would be cut drastically in the government’s latest plan to axe spending.
In a move to reduce the cost of laying off hundreds of thousands of state employees, new caps on redundancy are set to be introduced within weeks.
But last night the plan drew furious opposition from unions, who said the government’s “disgraceful” tactic would be fiercely resisted.
Francis Maude, the Cabinet Office minister, wants to change Civil Service Compensation Scheme rules so that severance payouts drop from up to six years’s salary, to a figure equivalent to a few month’s pay. Ministers intend to act so any redundancy after 15 September will be under amended rules.
Only workers earning under £21,000 would receive a guaranteed minimum payment.
Last night Public and Commercial Services (PCS) union spokesman Richard Simcox told City A.M: “If the government were to change the law to do this that would be a disgraceful move, simply because they didn’t get the result they wanted when we have twice been to court.”